Mercedes-Benz Consistently Implements Its 2020 Growth Strategy

– Best-ever first quarter expected for unit
sales

– Plant opening in Kecskemet is another milestone
on the way to the top

– Dr. Dieter Zetsche: «We have a fighting spirit in
the entire organization to become the leading manufacturer of premium
automobiles once again also in terms of unit sales.»

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• Mercedes-Benz Buyer’s Guide

KECSKEMET, –: Daimler AG sees Mercedes-Benz
well on its way to achieving the goals of its 2020 growth strategy and
reclaiming the number one position in the premium segment by the end of the
decade.

Dr. , Chairman of the Board
of Management of Daimler AG and Head of Mercedes-Benz Cars, stated to
investors and analysts at the opening of the new plant in Kecskemet, : «Mercedes-Benz is consistently
implementing its growth strategy. We have a fighting spirit in the entire
organization to become the leading manufacturer of premium automobiles once
again also in terms of unit sales. We are aware of the challenges and we
will master them.»

Following the successful year 2011, in which the division posted new
records for unit sales, revenue and earnings, the year 2012 has also
started well. Mercedes-Benz Cars is expected to report the best unit sales
it has ever achieved in a first quarter.

With its Mercedes-Benz 2020 growth strategy, the Mercedes-Benz Cars
division intends to occupy the number one position in the premium segment
not only in terms of brand, products and profitability, but also of unit
sales. Zetsche left no doubt that all efforts are being made to achieve
those four goals, with the support of a large number of activities.

With regards to the Mercedes-Benz Daimler is further
strengthening its core brand values of fascination, perfection and
responsibility to broaden the customer base and address younger customers.
This will be facilitated by the five new models of the new-generation
compact car, and also by highly emotive vehicles such as the CLS Shooting
Brake.

With the automobile portfolio is being rejuvenated and
a third product offensive has been started with 10 new derivatives for
which no predecessor models exist to be launched by the year 2015. For
example, the luxury segment will be enlarged by expanding the S-Class range
from three to six models with highly profitable derivatives.

The planned activities also include further reductions in fuel
consumption and CO2 emissions. «We are convinced that ‘cool’ and ‘green’
can peacefully coexist in our garages,» said Zetsche. Mercedes-Benz Cars
will be able to reduce the average CO2 emissions of its automobiles sold in
the European Union from today’s 150 grams per kilometer to 125 g/km by the
year 2016. The new A-Class will start with emissions of 99 g/km.

In order to further increase the automobile portfolio
will be successively expanded and geographical presence will be broadened
by expanding sales structures and production capacities, especially in the
NAFTA region and in .

There will be a positive impact on the progress to the top of the
premium segment from the fact that the automotive industry continues to be
a growth industry. According to forecasts, worldwide car sales will
increase from 60 million units in 2011 to 100 million units in 2020. is already the world’s biggest market in
terms of unit sales and will remain so in 2020, but the country’s car
market will have doubled by then.
therefore remains a cornerstone of Mercedes-Benz Cars’ growth strategy. The
second-most important sales market, , is projected to have an annual average growth rate in the
premium segment of 5.6%. And will
advance to become the world’s third-largest car market by 2020.

Irrespective of this development, a clear target has been set of
«achieving above-average growth in those markets and of further improving
our competitive position,» stated Zetsche. In this context, he affirmed the
medium-term target for unit sales of Mercedes-Benz: sales of more than 1.5
million vehicles in 2014 and more than 1.6 million in 2015 (2011:
1,279,100. Zetsche pointed out that the emphasis was on the word
«more.»

Mercedes-Benz Cars will further improve its by
means of project-related cooperation such as with Renault/Nissan, as well
as through savings achieved from the module and platform strategies and
improved efficiency in the value chain. At the same time, the enhanced
flexibility of the international production network will make it possible
to react faster to fluctuations in demand.

Due to savings from the module strategy and further efficiency actions,
the division will be able to compensate for the cost burden anticipated in
the automotive industry from rising raw-material prices and investments to
reduce CO2 emissions, thus safeguarding its profitability targets. «At
Mercedes-Benz Cars, we are approaching our targeted return on sales of 10
percent, which we want to achieve on a sustained basis as of 2013
– on the assumption that our business environment will remain
stable,» emphasized Zetsche.

How the Mercedes-Benz 2020 growth strategy works in practice can first
be seen in the compact-car segment. The new plant in Kecskemet is a
state-of-the-art factory for Mercedes-Benz Cars; it will produce cars in
conjunction with the plant in Rastatt and will make a key contribution to
economy through volume flexibility.

Profitability in the compact-car segment will be additionally improved
compared with the predecessor generation by producing a significantly
higher volume of five different cars from the same architecture instead of
two, and by spreading the production network over three plants
(Rastatt/, Kecskemet/ and .

On the occasion of the opening of the new plant for the production of
the new B-Class, Daimler had invited investors and analysts to attend a
division day in Kecskemet in .

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